The present invention relates generally to an apparatus and method for exchanging numismatic material. More specifically, the present invention relates to an apparatus and method for creating a virtual exchange in which buyers and sellers can offer and examine collectable coins including items considered to be exonumia such as tokens, medals and the like.
The art of numismatics, more commonly known as coin collecting, is one of the world""s oldest hobbies. People have exchanged collectible coins for almost as long as man has used them as a medium of exchange. In the late nineteenth century, the practice of coin collecting became so widespread that an active commercial market developed where an informal network of dealers bought and sold coins to interested individuals.
Recently, as the prices of rare coins has increased, collectable coins have become a medium of investment. This has produced dramatic changes in the way business is conducted within the numismatic marketplace.
One of these changes is the widespread use of the Sheldon incremental coin grading scale. Historically, an expression of a coin""s state of preservation or its xe2x80x9cgradexe2x80x9d was limited to a descriptive range beginning with a grade of GOOD and ending with a grade of UNCIRCULATED. The succession of traditional descriptive grades read as follows: good (G); very good (VG); fine (F); very fine (VF); extremely fme (EF); about uncirculated (AU); uncirculated (UNC) or mint state (MS). In contrast, when using the Sheldon coin grading scale, a coin""s state of preservation is further defined on a numeric scale in which xe2x80x9c1xe2x80x9d represents the worst possible condition and xe2x80x9c70xe2x80x9d represents the best possible state of preservation. Widespread adoption of Sheldon""s expanded method for grading collectible coins has intensified the standards of grading. Methods, systems, and mechanisms for objectively grading and identifying coins are described in the U.S. Pat. Nos. 4,899,392; 5,220,614; 5,224,176; and 5,494,147, for example.
A coin""s grade contributes greatly to its market value. In many instances, a very slight difference in grade can correlate to a large difference in value. As a general rule, the market value of a collectible coin tends to increase non-linearly with incremental increases in grade. Consequently, a coin which exhibits a high state of preservation, that is to say, a pristine coin that remains MINT STATE having never circulated will likely command a market price many times higher than the same coin grading AU58. During day to day commerce, a coin""s state of preservation decreases due to normal handling by the public. A drop in grade from MS66 to EF45 can at times translate to a non-linear reduction in market value extending throughout the full range of grades down to G04 and below. For certain specimens, uncirculated examples may be so scarce that less than a few are known to exist. In these rare instances, as much as 90% of the coin""s potential market value resides in being classified as MINT STATE (MS60 through MS70). For extremely rare and highly sought after coins, a difference of only a few points within the uncirculated category can effect market value by thousands of dollars.
Another change that greatly influenced the numismatic marketplace was the introduction of encapsulated coins graded by an independent third party. As the numismatic marketplace began to use the expanded Sheldon grading scale, concern regarding the reliability of grading within the market increased. Market participants soon learned that a coin grading MS65 may have a market value many times greater than the same coin grading MS64, although the distinction may not be readily discernible to the untrained eye.
A coin purchased by a dealer as MS64 might be sold to a collector as MS65 affording the dealer a considerable profit. Due to the absence of a true method for certifying a coin""s grade, the average collector was often victimized by product misrepresentation. Industry leaders were deeply concerned that without consistent grading the rare coin market would suffer and likely diminish overall. In 1985, a group of notable coin experts banded together and formulated a plan to create a professional third-party coin grading service. The advent of the third-party appraisal of a coin""s physical condition, backed by a guarantee, and a national network of coin dealers provide a reliable form of consumer protection. In addition, the Professional Coin Grading Service popularized a method of encapsulation that gave the rare coin consumer added transactional security.
A case of the type commonly used to encapsulate coins is described in the U.S. Pat. No. 5,042,650 to Mayer and Hall. This patent describes a rigid plastic coin case having two interlocking plastic plates ultrasonically sealed together to form a tamper proof and protective enclosure for collectible coins.
The popularity of third party grading coupled with the practice of encapsulating only authentic coins within tamper proof plastic holders revolutionized the numismatic market. Authenticated coins, encapsulated in plastic and certified as to grade soon began to move in the marketplace as almost fungible commodities. At present, it is not uncommon for buyers and sellers to consummate trades without the buyer having physically examined the coin. In fact, this marketplace is established to the extent that near real time quotes are available with relative price spreads (BID vs. ASK) for all but the most rare and unique specimens.
Despite these developments, prudent buyers who invest significant sums on individual coins typically do not purchase expensive pieces sight-unseen. While traded sight-unseen, coins have too much individual identity to be a fungible commodity. Thus, the coin shows that are organized on an almost weekly basis around the United States, remain the forum where many collectors examine coins before committing to a purchase. A coin show gives both dealers and collectors the best opportunity to examine currently available material.
The development of easily accessible electronic commerce, such as through the Internet, was quickly adopted by individual coin collectors in the sight-unseen coin market. In addition to significantly increasing the size of the marketplace and eliminating the time lag that exists in print publications, electronic commerce permits individual coin collectors to act as dealers whenever it suits them. Historically, individuals opting to participate within the coin market as dealers had to pay a high price for admission. Initial inventory, advertising expenses, direct mailing costs, travel, lodging and a storefront all contributed to high startup costs.
Alternatively, by using electronic commerce, any collector can become a part-time coin dealer selling coins he owns via any of the readily available on-line auction services, for example. Such auction services and even more informal bulletin boards permits any collector to sell his coins at near retail level to another collector rather than to an established dealer at a considerable discount. As a consequence, an invigorated and rapidly growing sight-unseen coin market has evolved in xe2x80x9ccyberspacexe2x80x9d and the once clear differentiation between dealer and collector has become blurred.
However, unlike a coin show where one can walk the floor and browse, the nature of the sight-unseen market often impedes a collector""s natural tendency to xe2x80x9chuntxe2x80x9d for undergraded bargains or xe2x80x9ccherrypickxe2x80x9d rare die varieties from the inventories of dealers who lack such knowledge. These activities usually require close physical proximity to a plentiful selection of coins, a circumstance that is impossible given the unique logistic nature of the sight-unseen coin market. Furthermore, experienced coin collectors and dealers realize implicitly that the process of accurately grading and pricing a coin depends on careful physical examination. Such examination is usually carried out with the aid of a jeweler""s loupe or magnifying glass. The traditional sight-unseen market makes it difficult for new collectors to develop a feeling for how collectable coins are examined, graded and priced. Individual self-reliance with respect to grading rare coins is an absolute necessity for increasing the number of collectors willing to invest in quality coins. Therefore, it would be desirable to offer novice buyers and sellers a more favorable sight-unseen marketplace environment where the exchange of numismatic material sight-unseen could be carried out in a virtual marketplace experience that would present an abundant offering of virtual coins for buyers to carefully examine at will, each coin capable of being inspected interactively as if under simple magnification.
The present invention concerns a system and method for creating a more robust virtual marketplace for examining coins with linked multiple images of each coin being offered for sale. Such linked multiple images, referred to hereinafter as a Coin Image Compilation, are stored on a host computer system that is remotely accessible. A prospective buyer can access the host computer and review the Coin Image Compilation to examine the visual appearance of any coin he wants to buy.
One aspect of this invention comprises a computer system for selectively displaying a Coin Image Compilation where the Coin Image Compilation comprises a plurality of linked images representing different resolutions of the original image and tiled sub-images of the entire image. This computer system comprises a host computer; a data storage device operatively connected to the host computer for storing the Coin Image Compilation, a remote terminal that can connect to the host computer to access the Coin Image Compilation; a display device connected to the remote terminal; and an input device connected to the remote terminal for selecting for display on the display device from the data storage device a selected image corresponding to a predetermined resolution and number of tiles.
Another aspect of the invention is a computer system for selectively generating Coin Image Compilations. This computer system comprises an HTTP (Hypertext Transfer Protocol) host computer; at least one data storage device operatively connected to the HTTP host computer; data for multiple images of the Coin Image Compilations stored on the at least one data storage device; a remote terminal capable of reading and rendering HTML (Hypertext Markup Language) pages that can connect to the host computer; a processor mounted on the HTTP host computer that generates successive dynamic HTML pages on-the-fly from the data and streams the dynamic HTML pages to the remote terminal as requested by the remote terminal.
Still another aspect of the invention is a method for selectively viewing Coin Image Compilations on a remote terminal connected to a host computer where the Coin Image Compilations comprise images 1, 2, 3, . . . N of an obverse view, a reverse view, and a holdered view, the method comprising the steps of: a) connecting the remote terminal to the host computer; b) querying a database of the Coin Image Compilations on the host computer from the connected remote terminal; c) selecting a Coin Image Compilation from the queried database; d) sending the image 1 of the obverse view, the reverse view, and the holdered view from the host computer to the remote terminal; e) displaying the sent image 1 of the obverse view, the reverse view, and the holdered view at the remote terminal; f) selecting any displayed image; g) requesting one of images 2 through N of the selected image from the host computer; h) sending the requested one of the images 2 through N from the host computer to the remote terminal; i) displaying the sent image at the remote terminal in place of the selected displayed image; and j) repeating steps f) to i) as desired.
Recognizing the important role which third party grading services play within the numismatic market, it should be stated that an object of the present invention is to provide an improved business model for existing third party grading firms where the internal and external deployment of a well developed Numismatic Imaging Protocol such as the Certified Coin Image Compilation disclosed herein may better serve the collective best interests of all market participants.
Accordingly, it is one object of the present invention to provide a well developed Numismatic Imaging Protocol for the numismatic industry where the deployment of such protocol can be used internally within third-party grading firms to increase the productivity and consistency of expert coin graders employed by such firms.
It is generally accepted and appreciated that third party grading firms remain at-arms-length with respect to trading. This restriction ensures that their contribution to the marketplace and their grading practices remain unbiased. In keeping with the spirit of this self imposed market behavior, the present invention if practiced by third-party grading firms can successfully preserve the anonymity of coin owners without departing from the present invention""s spirit or scope or limiting its use or practice elsewhere within the market.
Accordingly, it is an object of the present invention to leverage the inherent power of the World Wide Web""s distributed content characteristic by providing an apparatus, method and system for Certified Coin Image Compilation whereby the invention""s unique graphic layout and coin image presentation can be linked to and displayed simultaneously in conjunction with independent attempts by numismatists to offer coins for sale via the World Wide Web.
Accordingly it is a primary object of the present invention to overcome prior art limitations by providing novel technology that uses network bandwidth efficiently, making it possible for a third party grading firm to present image-rich, responsive Web pages that access high-quality, high resolution data for zooming in on and exposing fine image details of collectable coins having been authenticated, graded and encapsulated by the firm.
It should therefore be stated that another object of the present invention is to provide an improved method for encapsulating collectable coins where the permanent application of a World Wide Web address (URL) to an encapsulated coin""s protective case or the addition of like identifying indicia within the rigid plastic protective holders provided by third party grading firms facilitates the utilization of Certified Coin Image Compilations within the virtual numismatic marketplace.
Accordingly, it is another object of the present invention to provide a well developed Numismatic Imaging Protocol for the numismatic industry where the external deployment of such protocol by a third party grading firm leads to a beneficial increase in the overall goodwill and aggregate added value associated with at least one third party grading firm""s installed base of encapsulated coins.
Another object of the invention is to provide an apparatus and method for matching remotely located buyers and sellers of numismatic material through the use of a computer system that permits a prospective buyer to select an item of interest and examine it in detail via multiple linked images.
Additionally, it is an object of the present invention to overcome the technical and financial impediments facing numismatists by providing an apparatus, method and system whereby prospective sellers of numismatic material can best present visual and textual information pertaining to their coins without the need to possess HTML coding skills, expensive photographic equipment or access to a Web server.
Accordingly, it is an object of the present invention to provide an apparatus and method for matching buyers and sellers of numismatic material through a data communications network wherein the system offers: readily available online access to a host system containing a plurality of numismatic items; online search capabilities permitting a prospective buyer to select an item of interest based on a plurality of user defined search criteria; displaying the resultant item according to a unique identification number; providing the prospective buyer with a novel, high resolution interactive display defined herein as a Certified Coin Image Compilation.
Accordingly, it is yet another object of the present invention to provide an apparatus and method providing educators, writers, researchers and the like with pertinent numismatic information through a data communications network wherein the system offers: readily available online access to a host system containing a plurality of numismatic items; online search capabilities permitting a researcher to select an item of interest based on a plurality of user defined search criteria; displaying the resultant item according to a unique identification number; providing the numismatic researcher with a novel, high resolution interactive display defined herein as a Certified Coin Image Compilation.
Accordingly, it is another object of the present invention to provide a well developed Numismatic Imaging Protocol for the numismatic industry where the utilization of high resolution visual documentation in conjunction with collectors"" offer to sell coins raises in a measurable way transactional efficiency within the coin market.